2022 (7) TMI 1484

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..... -3, Mumbai, for the assessment year 2014-15. 2. In the present appeal, the assessee is aggrieved against the adjustment of Rs.5,23,79,628, in respect of specified domestic transactions entered into by the assessee. 2. When this appeal came up for hearing, the learned Representative appearing for the parties fairly agreed that the aforesaid issue, arising in the present appeal, is covered by the recent decision of the Co-ordinate Bench of the Tribunal in Mahindra Two Wheelers Ltd. v/s DCIT, ITA no.519/Mum./2018, order dated 28/04/2022, for the assessment year 2013-14. 3. We find that the Co-ordinate Bench of the Tribunal in Mahindra Two Wheelers Ltd. (supra), while dealing with the similar issue, observed as under:- "017. We have carefu .....

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..... ch, which was partly challenged by the revenue before the honourable High Court, also held so. In that case, the coordinate bench held that the adjustment on account of examination of the arm's-length price of the specified domestic transactions is not valid because of deletion of the provisions of Section 92BA (1) of the act with effect from 1/4/2017 without any saving clause, but it held that provisions of Section 40A (2) of the act governs the allowability of those expenditure and therefore coordinate bench set-aside the matter back to the file of the learned assessing officer. The decision of the coordinate bench setting aside the issue back to the file of the learned assessing officer for examination of allowability in accordance w .....

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..... e present case earlier the impression of the revenue prior to the decision of the coordinate bench and of the honourable Karnataka High Court, was that specified domestic transaction l.e. transactions that are covered by the provisions of Section 40 A (2) are required to be tested in accordance with the provisions of chapter X of the act. However when the judicial precedents show that no such provision exist in the law, the natural corollary would be to examine the allowability of these expenses u/s 40A (2) of the act. 020. In view of this ground number 5 of the appeal of the assessee is partly allowed." 4. As similar issue is arising in the present appeal, we see no reason to deviate from the view so taken by the Co-ordinate Bench of the .....

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